Malaysia’s Gross Domestic Income 2017

Malaysia’s economy augmented further in 2017 with the value of GDP at current prices reached RM1,353.4 billion (2016: RM1,231.0 billion) and rose to 9.9%. The expansion in GDP was spearheaded by GOS which recorded RM813.0 billion (2016: RM732.6 billion) while CE amounted to RM475.7 billion, an increase of RM41.7 billion from 2016. Taxes less Subsidies on Production and Imports stood at RM64.7 billion (2016: RM64.4 billion).

GOS remained the largest share in income components at 60.0% (2016: 59.5%) and posted a double-digit growth of 11.0% as compared to 4.7% in the preceding year. The contribution of CE to Malaysia’s economy was 35.2% and expanded to 9.6% (2016: 7.7%) which was largely driven by Services and Manufacturing sector. Taxes less Subsidies on Production and Imports formed 4.8% (2016: 5.2%) of overall income with a marginal growth of 0.5% after posted 15.7% in the previous year (Chart 1).

COMPENSATION OF EMPLOYEES

Services was the largest contributor to the total of Malaysia’s CE, generated 60.0% (2016: 60.7%). Meanwhile, share of Manufacturing expanded to 23.2% as compared to 22.7% in the previous year. Construction contributed 10.1%, followed by Agriculture and Mining & quarrying which hold 4.9% and 1.8% of share respectively (Chart 2).

CE continued to record strong growth of 9.6% in 2017, largely impelled by Services which increased to 8.5% as compared to 7.7% in the preceding year. The double-digit growth in Wholesale & retail trade, food & beverage and accommodation at 12.0% has driven the CE in Services.

Manufacturing recorded an increase of 11.7% as against 6.2% in the previous year. The double-digit growth was propelled by Electrical, electronic & optical products which surged to 11.5% particularly in electronic components and consumer electronics products.

Construction remained strong by registering 8.9% as compared to 10.1% in 2016. The sturdy momentum of CE in this sector was backed by civil engineering activities. CE for Agriculture augmented from 9.8% to 13.4% in 2017 mainly driven by oil palm activities. Mining & quarrying also recorded a double-digit growth by expanding to 15.7% as compared to 5.6% in the previous year (Chart 3).

GROSS OPERATING SURPLUS

As the largest contributor to the economy, Services accounted for 51.0% to total GOS in 2017. This was followed by Manufacturing with a contribution of 22.4%. Mining & quarrying and Agriculture sectors contributed 13.8% and 11.1% respectively. Meanwhile, Construction recorded the lowest contribution with a share of 1.7% (Chart 4).

GOS rose to 11.0% surpassed the economic growth of 9.9% supported by the expansion in all sectors. Services strengthened to 8.7% as compared to 6.3% in 2016. The growth was attributed by the double-digit growth of 10.2% in Wholesale & retail trade, food & beverage and accommodation.

Manufacturing picked up to 12.4% fuelled by the robust growth of 15.8% in the Petroleum, chemical, rubber & plastic products. The growth was further supported by Food, beverages & tobacco which rebounded to 20.8% (2016: -5.7%).

Momentum of GOS in Mining & quarrying stepped up to 17.7% from marginal growth of 0.3% recorded in the previous year, benefitted from the higher petroleum price in 2017. Likewise, Agriculture recorded a double-digit growth of 11.5%, while Construction increased to 5.9% from 0.1% in previous year impelled by sturdy performance in civil engineering activities (Chart 5).